The chamber of commerce in a beach resort town wants to estimate the proportion of visitors who are repeat visitors. From previous experience they believe the portion is in the vicinity of 0.5 and they want to estimate the proportion to within ± 0.03 percentage points with 95 percent confidence. The sample size they should use is:
A) n = 1068
B) n = 545
C) n = 33
D) n = 95

Question

Quizplus · Accepted Answer

To estimate the sample size needed for a proportion with a specified margin of error and confidence level, the formula is n = (Z^2 * p * (1-p)) / E^2, where Z is the Z-score for the confidence level (1.96 for 95%), p is the estimated proportion (0.5 in this case), and E is the margin of error (0.03). Plugging in these values gives n = (1.96^2 * 0.5 * 0.5) / 0.03^2 = 1067.11, which rounds to 1068.

The Chamber of Commerce in a Beach Resort Town Wants